MIDC to Secure Funding for Purandar Airport Land Acquisition Within 10 Days
Officials from the Maharashtra Industrial Development Corporation (MIDC) stated on Monday that the agency will finalize a financial institution within the next 10 days to raise funds for land acquisition for the proposed Purandar airport. This move follows a government resolution (GR) issued by the industries department, granting approval and state guarantee for MIDC to raise Rs 6,000 crore.
Funding and Land Acquisition Details
The funds are intended for acquiring 3,000 acres of land from seven villages in Purandar taluka. The GR authorizes MIDC to secure the loan from the housing and urban development corporation or any other financial institution at competitive rates. District officials have already submitted a proposal to finalize land rates, and discussions with villagers will commence once funds are allocated.
Officials noted that over 90% of the farmers involved have agreed to sell their land, with the district administration having previously obtained their consent. Chief Minister Devendra Fadnavis recently mentioned a special project vehicle for the Purandar airport during the state budget, emphasizing the administration's commitment to land acquisition.
Financial Conditions and Compliance
Last week, the state government cleared the Rs 6,000 crore loan for acquisition but attached strict financial conditions. The GR mandates that MIDC comply with fiscal responsibility and budget management norms to ensure financial discipline and prudent debt management. The state guarantee is contingent upon this compliance.
The loan must be used exclusively for land acquisition and related works, with completion required within the stipulated timeframe. MIDC is also obligated to submit regular monthly or half-yearly reports to the state on repayment and financial status.
Loan Agreement Specifications
The GR directs that the loan agreement include clear repayment terms, penal interest clauses for delays, and provisions for refinancing at lower rates or a one-time settlement, if permitted. This structured approach aims to safeguard state interests and ensure timely project execution.
As the process advances, MIDC's swift action in securing funding is critical for progressing the Purandar airport project, which holds significant potential for regional development in Maharashtra.
